The government will strengthen the agricultural sector with “focused assistance” to farmers to improve their productivity, the Palace said Friday after data showed that poor farm output contributed to the slower rate of economic growth in 2018.
“We will strengthen agriculture through more focused assistance, with the end in view of addressing farmers’ livelihood concerns, increasing their productivity, and ensuring supply stability and food security for our people,” Cabinet Secretary Karlo Nograles said in a Palace briefing Friday.
Among the initiatives that the government has undertaken is the expansion of credit and loan facilities through the Land Bank of the Philippines, Nograles said.
“Last year, President [Rodrigo] Duterte directed the LBP, in close coordination with Departments of Agriculture and Agrarian Reform, to reach out to farmers and provide them with financial assistance,” he said.
During congressional deliberations for the 2019 national budget, the LandBank reported a high 62 percent amortization payment compliance by agrarian reform beneficiaries because the state-owned bank’s financing schemes empowered farmers.
The DAR then launched a new lending facility called the Accessible and Sustainable Lending Program for Small Farmers, which sets a low 6 percent per annum interest rate.
“We’re assessing response to the program so that we can tweak and make improvements. The ASL Program has credit components to individual farmers, farmers cooperatives, and agri-based associations, so it’s really comprehensive,” Nograles said.
He also said the government closely monitors the country’s production targets for the harvest seasons this year.
“Ongoing efforts are underway in closely coordinating with the DA, and the agency is examining our production targets for the coming harvest seasons. Of course, we’re already factoring in effects of weather disturbances, prices of farm inputs, and the like,” Nograles said.
“The government recognizes the importance of the sector and how vital a contributor it is to the Philippine economy. This is why the agencies involved are working hand in hand to ensure that government interventions have a positive impact on the agriculture sector and its stakeholders, especially our farmers and fisherfolk,” he said.
On Thursday, the Philippine Statistics Authority reported that the economy only grew by 6.2 percent in 2018, the slowest rate of growth in three years.
The PSA attributed the slower growth last year to sluggish agricultural production and rising inflation.
Meanwhile, Agriculture Secretary Emmanuel Piñol said in a statement the former stronghold of the Moro Islamic Liberation Front would be converted into a banana plantation, with Russian and Swiss companies committed to spend about P8 billion to develop the 7,000 hectares of land in and around Camp Abubakar to grow bananas.
The plantation is expected to be the first and biggest investment in the Bangsamoro region after the passage of the Bangsamoro Organic Law, he said.
“When fully operational, the project is expected to provide work for at least 10,000 people, many of whom [are] former cadres and combatants,” he said.
Irrigation mapping and assessment of the quality of the soil in the area will begin next week, he added.
Also on Friday, Senator Joel Villanueva said the slowdown in agricultural output in 2018 was a cause for concern.
“We should continue to help and provide technical support to LGUs so that our agricultural extension offices will be more effective in boosting the production and income of farmers,” he said. “We hope that the P43.6-billion budget we allocated to the Department of Agriculture be put to good use so that our farmers receive the most effective and necessary support to uplift the lives of their families.
“Our resolve must be stronger to improve the resilience of the agriculture sector to climate change while continuously improving farmers’ direct access to market,” he added. With Macon Ramos-Araneta